Last week, EUAs experienced a notable 7.6% gain, primarily driven by their second-largest daily increase of the year on Thursday, which correlated with a similar movement in Dutch TTF. However, a slight decline was observed on Friday, likely attributable to profit-taking before the weekend.

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Auction volume: 8.5 million EUAs, 2.6 million less than last week.

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Looking ahead, there is a potential scenario where EUAs trade in a sideways to a bearish pattern, following the strong momentum that prevailed in the market last week. As EUAs and Dutch TTF are edging higher today, it adds to the possibility that a retracement will happen in the following days.

Gas storage levels increased slightly to 63.3% full as of May 4, up from 61.7% recorded on April 27. However, forecasts indicate warmer-than-normal weather sweeping across much of Europe in the coming fortnight, particularly in Spain where temperatures are already on the rise. Notably, no auctions are scheduled for Thursday and Friday. Meanwhile, Denmark's Tyra gas field confronts delays, prompting concerns over its impact on BlueNord's guidance. In a positive environmental development, there has been a significant reduction in CO2 emissions from Belgian industry. Azerbaijan finds itself in a delicate balancing act, torn between allocating more gas for Europe and promoting the expansion of renewable energies. Adding to the energy mix, Sweden's 1400 MW Oskarshamn 3 - G3 nuclear reactor resumed operations on May 4, as confirmed by the Nordic power exchange Nord Pool in a market announcement on Friday.

‍Technical Analysis

The chart appears to be developing a "Cup and Handle" pattern, suggesting the possibility of a slight dip in price this week. Initial support is seen around the 69EUR mark. This downward movement could be validated by the approaching crossing of the FSI, while the RSI remains uncertain. Additionally, the MACD indicates a slight bearish sentiment on the daily chart, pending confirmation with today's closing. Moreover, according to candlestick theory, Friday's closure with a "Shooting Star" pattern could signal a potential reversal if confirmed in the following day's trading.

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